Breakdown of calculations of savings and funding increases in Burlington's 2019 budget

Your Council has delivered the lowest tax increase in eight years, while increasing funding for infrastructure by $2.772 million, reducing the operating budget by $622,977 and adding high value community initiatives. Council approved the 2019 Capital Budget of $96.4 million with a 10-year program of $819 million on Feb. 25, while the 2019 Operating Budget, at approximately $165 million, heads for approval at Council's March 25 meeting.Here's how we added service while cutting the tax increase in the operating budget to 2.99%:

• free transit for seniors and low-income residents;
• three new conventional buses and six drivers to increase frequency on main routes;
• one Handi-Van and one new driver to respond to increased demand;
• more tree planting and park maintenance resources;
• two new by-law officers and one additional seniors' programming staff;
• funds to process planning applications within the legislated time frame;
• and more.

Here's how we did it:By selectively trimming capital and operating costs, reallocating resources to community-valued projects, using the surplus from 2018 before drawing on reserves, and deploying selective reserves to their stated intent. Here's a summary of what we did during approximately 20 hours of deliberations for both the capital and operating budgets:

1. Increased overall infrastructure funding by $2.772 million, while also reducing or deferring several projects to provide tax relief;
2. Reduced overall operating budget by $666,977, while adding services for residents, by reallocating resources to high-value community initiatives;
3. Funded two additional staff positions, for by-law enforcement and seniors' programming, from Human Resources gapping, which is regularly in a surplus of $1 million or more;
4. Funded additional planning resources to meet legislative time frames from the fee-for-service reserves intended for that purpose;
5. Funded additional Official Plan studies, not yet undertaken, from the Policy Initiatives Reserve intended for that purpose;
6. Funded additional one-time projects, pilot projects, items with expected future revenue or items whose full costs are unknown, amounting to $2.008 million through surplus form 2018 of $1.888 million;
7. Drew an additional $75,000, for a total of $120,490, from the Tax Rate Stabilization Fund intended to reduce tax impact, to keep the increase to 2.99%.

MY TAKE: I'm proud of my council colleagues and city staff who worked together for this significant achievement. This budget invests in what the community has been asking for - better transit and free fares, more tree planting and bylaw enforcement, increased infrastructure funding, and more - all while attaining a city tax levy close to the rate of inflation. It took hard work, and cooperation; I’m especially proud of the respectful dialogue and courteous treatment by council members of each other, staff and residents, as we debated (and sometimes disagreed about) more than 50 motions over many hours. The community is well served by this budget.See the full detailed calculations below1. INCREASED INFRASTRUCTURE FUNDING:

Repurposed hospital levy:	$1.7 million
Dedicated infrastructure levy:	$2.001 million
Subtotal increase to infrastructure:	$3.701 million
Reductions:
Reduce cost of pedestrian improvements at Elgin/Brant:	- $164,000
Defer Elgin promenade to 2020, seek upper government funding:	- $680,000
Fund by-law vehicle with one-time funding:	- $35,000
Defer fire department drone:	-$50,000
Subtotal reductions:	-$929,000

Net increase to infrastructure funding:

$2.772 million

2. REDUCTIONS TO OPERATING BUDGET:

Staff initiated:
Reduction to Corporate (City Manager's) budget):	- $235,000
Reduce $230K annual Randle Reef payments from base:	- $100,000 (4 payments left)
Eliminate vacancy rebate (program discontinued):	- $100,000
Council salary recoveries from Halton Region:	- $40,983
Bill 148 impact of staff costs:	- $21,994 (Subtotal: $497,977)
Council Initiated:
Eliminate balance of Randle Reef payment from base:	-$130,000 (fund from reserve funds)
Increase Provincial Gas tax revenue to Operating / Draw from Tax Rate Stabilization Fund:	-$264,200 / - $75,000 (respectively)
Subtotal operating budget reductions:	- $967,177

Other: Keep Provincial Gas Tax in Operating (rather than transfer to Capital):

- $500,000

3. INCREASES TO OPERATING BUDGET:

Provide maintenance for new BurlOak waterfront park:	$67,000
Increase annual tree-planting provision:	$100,000
Provide free transit for low-income residents (reduce 50% cost of Region's low-income SPLIT pass to zero):	$108,200
Increase Arts and Culture Fund:	$25,000
Subtotal increases to operating budget:	$300,200

NET DECREASE IN OPERATING BUDGET:

- $666,977

4. USED SURPLUS - from 2018 of $1.9 million for one-time projects, pilot projects or those where cost aren't known (See 2018 surplus retained savings report here):

Human Resources:	$904,858
Investment earnings:	$648,809
Winter control from mild 2018:	$691,498
TOTAL 2018 SURPLUS:	$1,887,510

One-time costs approved:
Integrated Transportation Plan:	- $300,00
Free off-peak transit for seniors (9 a.m.-2:30 p.m. to end of 2020):	- $235,800
Update tree management plan:	- $100,000
Randle Reef payment:	- $200,000
Fire education one-year pilot:	- $35,000
Fund new Joseph Brant Museum staff for one year (report back on revenue to offset costs):	- $115,000
Fund one-time costs for museum staff:	- $58,000
By-law vehicles (2):	- $70,000
Add top-up funding for Emerald Ash Borer, tree-planting, woodland management & Gypsy Moth spraying:	- $565,000

Extend plumbing grant to flood-proof homes:	- $30,000
Enterprise Management Program (This is a four-yr. $1.5M program, subject to review by council in April):	- $375,000 (April 2019 portion)

Additional planning resources to meet legislative time frames:	- $200,000
Additional Official Plan work:	-$600,000

Draw on Tax Rate Stabilization to realize 2.99%:	- $75,000
Total 2019 one-time costs funded through surplus:	- $2,958,800
Total Draw on Tax Rate Stabilization for 2019:	- $1,288,000 (assumes ERP at $375K and $500K to Randle Reef Reserve Fund)

5. OTHER:

New by-law officer:	- $111,137
New seniors' programming staff:	- $114,463

*Both funded from expected HR surplus in 2019. HR has been in surplus every year due to staff turnover and/or retirements resulting in gapping — the time between a staff departure and a staff hire. See summary of surplus of 2014-18 here.